Have a HSA? Here is what you need to know as you prepare your 2019 Tax Return.
HSA contributions and distributions are non-taxable when used for qualified medical expenses (check out our eligibility list here). And as a HSA account holder you need to report all contributions and distributions made to your HSA when filing taxes.
There are two forms you will need to report your HSA transactions from last year: Forms 1099-SA and 5498-SA. If you are a 24HourFlex participant, both of these forms are available for download in your Consumer Portal under the “Tools & Support” tab. For more information on the availability of your tax forms, click here.
- Form 1099-SA shows all of the distributions you’ve taken from your HSA in the last tax year. A distribution is any amount you withdrew from your HSA to pay for expenses during the year. If you did not have any distribution activity from your HSA(s) this year, then you will not be issued a 1099-SA. If you have more than one HSA account, then you will have more than one 1099-SA. In the event of multiple 1099-SAs (multiple HSA accounts), you will add the figures together.
2. Form 5498-SA shows all of the contributions to your HSA in the last tax year. This form shows the total of all HSA contributions made during the tax year. A contribution is any amount of money deposited into your HSA during the year. If you make any additional contributions to a previous tax year after the original 5498-SA is generated and before the tax filing deadline, a revised 5498-SA will be issued for you.
Did you also know you can make additional contributions to last year’s HSA?
Yep! If you did not contribute the maximum amount for the 2019 tax year ($3,500 for individuals and $7,000 for families), you still have time to make additional tax-deductible contributions to your HSA that count toward the prior year!
Even though you have until the tax deadline to do this (April 15), it’s recommended that you make any final contributions in early April to allow time for changes to process in your account and still allow you to file your return on time. If you are making a final 2019 contribution by check, we recommend mailing it by 4/1, or if you are making it by direct deposit online by 4/8.
If you are a 24HourFlex participant, you can make additional contributions to your HSA in your Consumer Portal or using the 24HourFlex Mobile App. If you are looking to apply the amount to the prior tax year, simply select “2019” as the tax year. Don't forget, if you would like to contribute the maximum contribution for 2019, it must be done by April 15. Learn more here.
When was the last time you did an HSA check-up?
Since we have your attention, now is a good time to make sure you have all ‘your ducks in a row’. When you opened your HSA you were likely asked to designate a beneficiary for your account. It never hurts to review those elections and make any needed adjustments now. For planning purposes, it’s helpful to know that If you designate your spouse as the beneficiary, then the HSA passes intact as a tax-advantaged account to your spouse. If you name anyone else, the account is liquidated before being passed to the beneficiary, who may incur a tax liability.
To add or make changes to your beneficiary designation, log into your 24HourFlex account and select the "Profile" tab. There you will see if you have a beneficiary designated and/or make changes.
Don’t forget, you have until April 15 to file your tax returns.
Interested in learning more about the benefits of HSAs?
Contact us to get in touch with a member of our team.